Wall Street giant Morgan Stanley has officially disclosed its ownership of shares in two exchange-traded funds focused on XRP, signaling a growing acceptance of Ripple’s native token within traditional finance. According to a recent quarterly filing with regulators, the financial institution reported holding a modest number of shares in both the Volatility Shares XRP ETF and the Grayscale XRP ETF. While these positions are relatively small compared to the firm’s broader portfolio, the move places Morgan Stanley among a select group of major banks now gaining indirect exposure to XRP through regulated investment vehicles.
This disclosure comes as Morgan Stanley continues to deepen its involvement in the crypto space. Earlier this month, the bank also filed an updated registration for a proposed Solana exchange-traded fund, which would not only track the price of SOL but also generate additional returns through staking rewards. The filing indicates that staking providers would be chosen based on reliability and performance, with rewards incorporated into the trust’s overall returns. Such steps suggest that Morgan Stanley views digital assets as a long-term growth area, despite periodic market volatility.
The XRP ETF holdings are particularly notable given that Ripple’s payment technology has been praised for its speed and lower costs compared to traditional systems like SWIFT. Although Morgan Stanley has not directly purchased XRP, its investment in these ETFs represents a vote of confidence in the asset’s institutional viability. Other financial giants, including Bank of America and UBS, have also reported similar small stakes in XRP-linked products in recent filings, indicating a broader trend of cautious yet growing institutional interest.
Market data reveals that institutional appetite for XRP remains resilient even as other digital assets face headwinds. Over the past three weeks, XRP investment products saw nearly $86 million in fresh inflows, while Bitcoin and Ethereum funds experienced significant outflows. On a recent Thursday, spot XRP ETFs recorded roughly $1.77 million in net inflows, with Bitwise’s product accounting for the entire amount. Meanwhile, derivatives activity has been steady, with traders focusing on options with strike prices around $1.60 and longer-term targets near $3.40 by September. At the time of writing, XRP traded near $1.30, up about 4% in the previous day, though trading volume dipped by roughly 13%.